{"id":24613,"date":"2016-06-21T13:11:55","date_gmt":"2016-06-21T20:11:55","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=24613"},"modified":"2016-06-21T13:11:55","modified_gmt":"2016-06-21T20:11:55","slug":"philadelphia-congressman-associates-convicted-corruption","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=24613","title":{"rendered":"Philadelphia Congressman and Associates Convicted for Corruption"},"content":{"rendered":"<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"><strong>PHILADELPHIA<\/strong><\/span><\/p>\n<hr \/>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-22946 alignleft\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/04\/Courtroom-300x169.png\" alt=\"Courtroom\" width=\"300\" height=\"169\" srcset=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/04\/Courtroom-300x169.png 300w, https:\/\/cjnotebook.com\/wp-content\/uploads\/2016\/04\/Courtroom.png 650w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>A federal jury today found <strong>Congressman Chaka Fattah Sr<\/strong>., 59, guilty of all charges surrounding his efforts to \u00a0replay a $1 million campaign loan, according to officials.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Fattah and three of his associates guilty of taking part in a racketeering conspiracy involving several schemes that were intended to further their political and financial interests by misappropriating federal, charitable and campaign funds, among other schemes.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Fattah, Robert Brand, 70, of Philadelphia; Karen Nicholas, 58, of Williamstown, New Jersey; and <strong>Herbert Vederman,<\/strong> 70, of Palm Beach, Florida, were found guilty of participating in a racketeering conspiracy.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\"> Fattah was also found guilty of conspiracy to commit bribery, bribery, conspiracy to commit wire fraud, conspiracy to commit honest services fraud, mail fraud, money laundering conspiracy, money laundering, bank fraud, false statements to a financial institution, six counts of mail fraud and five counts of falsification of records.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Vederman was also convicted of conspiracy to commit bribery, bribery, bank fraud, making false statements to the Credit Union Mortgage Association, falsification of records and two counts of money laundering.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Brand was also convicted of conspiracy to commit wire fraud.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Nicholas was also convicted of conspiracy to commit wire fraud, two counts of wire fraud and two counts of falsification of records.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Bonnie Bowser, 60, of Philadelphia, was acquitted of racketeering conspiracy but convicted of conspiracy to commit bribery, bank fraud, making false statements to the Credit Union Mortgage Association, falsification of records and money laundering.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">U.S. District Court Judge Harvey Bartle III scheduled sentencing hearings for Oct. 4 for Fattah, Vederman and Brand; and Oct. 5 for Nicholas and Bowser.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">\u201cCongressman Fattah corruptly abused his office for his own personal and political gain,\u201d said <strong>Assistant Attorney General Leslie Caldwell.<\/strong> \u201cHe took bribes, committed fraud and even stole money from his own campaigns. In short, Congressman Fattah and his co-defendants deprived the people of eastern Pennsylvania of their right to the honest services of their elected representative. &#8220;<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Adding, &#8220;Today\u2019s convictions should send a message that the Justice Department will vigorously investigate and prosecute political corruption wherever it takes place, and uphold the principles of honesty and integrity that are the foundation of our government.\u201d<\/span><\/p>\n<p><script src=\"http:\/\/www.nbcphiladelphia.com\/portableplayer\/?cmsID=383818891&amp;videoID=5U0iXMPABH9o&amp;origin=nbcphiladelphia.com&amp;sec=news&amp;subsec=politics&amp;width=600&amp;height=360\" type=\"text\/javascript\" charset=\"UTF-8\"><\/script><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">According to the evidence presented at trial, Fattah and certain associates borrowed $1 million from a wealthy supporter for his failed 2007 campaign for mayor of Philadelphia, and disguised the funds as a loan to a consulting company. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">After he lost the election, Fattah returned to the donor $400,000 that the campaign had not used and arranged for Educational Advancement Alliance, a non-profit entity that Fattah founded and controlled, to repay the remaining $600,000 using charitable and federal grant funds that passed through two other companies, including one run by Brand. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">To hide the contribution and repayment scheme, the defendants and others created sham contracts and made false entries in accounting records, tax returns and campaign finance disclosure statements.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Following his defeat, Fattah also sought to pay about $130,000 in campaign debt owed to a political consultant by agreeing to arrange for the award of federal grant funds to the consultant. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Fattah directed the consultant to apply for a $15 million grant that he didn&#8217;t get on behalf of a then-non-existent non-profit entity. In exchange for Fattah\u2019s efforts to arrange the award, the consultant agreed to forgive the campaign debt.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">In addition, the evidence indicated that Fattah misappropriated funds from his mayoral and congressional campaigns to repay his son\u2019s student loan debt. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">To execute the scheme, Fattah arranged for his campaigns to make payments to a political consulting company, which funds the company then used to lessen Fattah\u2019s son\u2019s student loan debt. Between 2007 and 2011, the consultant made 34 successful loan payments on behalf of Fattah\u2019s son, totaling approximately $23,000.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Beginning in 2008, Fattah communicated with individuals in the legislative and executive branches in an effort to secure for Vederman an ambassadorship or an appointment to the U.S. Trade Commission. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">In exchange, Vederman provided money and other items of value to Fattah. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">As part of this scheme, the defendants sought to conceal an $18,000 bribe payment from Vederman to Fattah by disguising it as a payment for a sham car sale.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Nicholas was found guilty of obtaining $50,000 in federal grant funds that she falsely claimed would be used by Education Advance Alliance to support a conference on higher education. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">Instead, Nicholas used the grant funds to pay $20,000 to a political consultant, $10,000 to her attorney and write several checks to herself from Education Advance Alliance\u2019s operating account.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">\u201cChaka Fattah Sr. and his co-defendants betrayed the public trust and undermined our faith in government,\u201d said U.S. Attorney Zane David Memeger. \u201cToday\u2019s verdict makes clear that the citizens of the Eastern District of Pennsylvania expect their public officials to act with honesty and integrity, and to not sell their office for personal gain. Hopefully, our elected officials in Philadelphia and elsewhere hear today\u2019s message loud and clear.\u201d<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 14pt;\">\u201cThe corruption demonstrated by Congressman Fattah and his co-defendants is yet another sad example of the type of behavior that corrodes citizens\u2019 faith in their government,\u201d said Special FBI Agent in Charge in Philadelphia William F. Sweeney. \u201cThe FBI is firmly committed to ensuring that public officials and their co-conspirators who choose to use their positions for personal gain rather than provide the honest services the community rightly expects will be investigated and brought to justice. The community deserves nothing less.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A federal jury today found Congressman Chaka Fattah Sr., 59, guilty of all charges surrounding his efforts to  replay a $1 million campaign loan, according to officials.<\/p>\n","protected":false},"author":1,"featured_media":24614,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3],"tags":[2781,426,195],"class_list":["post-24613","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-main-slider","category-u-s-department-of-justice","tag-congressman-chaka-fattah-sr","tag-corruption","tag-philadelphia"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Philadelphia Congressman and Associates Convicted for Corruption<\/title>\n<meta name=\"description\" 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